India has been a close ally of erstwhile Soviet Union since
1960’s and had an exceptional camaraderie. After the collapse of Soviet Union, Russia
became time-tested partner of India. For the past five decades, Russia was the
top most military weapons and equipment supplier of India. Bilateral relations
between these countries are rooted in and strengthened by defence trade. Irrespective of the change of leadership,
bilateral ties with Russia remained very strong. With signing of “Declaration
on the India- Russia Strategic Partnership” in 2000, the bilateral cooperation
soon extended to politics, trade and economy, security, culture, science and
technology. By 2010, the strategic partnership is elevated to Special and Privileged Strategic
Partnership. The dialogue mechanism between India and Russian Federation is
characterized by Annual Bilateral Summit Meetings which are held alternatively
in India and Russia. Modi on his two-day upcoming visit to Russia will
participate in the 16th Annual Summit Meetings on Dec 23rd.
During the 15th Annual Summit meet held in Delhi, on December 10th
2014, Prime Minister Narendra Modi and President Vladimir Putin adopted a joint
statement “Druzhba-Dosti”: A vision for strengthening Indian-Russian
Partnership over the next decade.
Russia has been key pillar of India’s foreign policy.
Besides, annual summit meeting at the highest level, two intergovernmental
commissions- one on trade, economic, trade, scientific, technological and
cultural cooperation (IRIGC-TEC) co-chaired by External Affairs Minister and
the Russian Deputy Prime Minister (DPM) and another on Military Technical
Cooperation (IRIGC-MTC) co- chaired by Defence Ministers of both countries meet
annually. Foreign Ministers of both countries this year met along the sidelines
of Russia-India-China (RIC) Foreign Ministers meet in Beijing this year.
Months before Modi’s state visit to Russia, Foreign Affairs Minister Sushma
Swaraj and Defence Minister Manohar Parrikar participated in the meetings and
prepared the ground for Modi’s annual summit meet. Traditional bilateral ties
so far were confined to defence, nuclear and heavy industry. With top aerospace
companies keen on investing in India for manufacturing components for the civil
and military programs in India, a high-powered Indian business delegates will
travel to attend Indo-Russia CEO meet to deliberate at the prospect of forming
joint venture (JV) companies. To boost up trade and investments Modi will
address the Russian investors at the Moscow Expo Centre on Dec 24th. About
300 Indian companies are registered in Russia whose cumulative investments
account for $8 billion while Russian investments in India is about $4 billion.
Last year Essar Oil has signed agreement with Rosenft Oil Company of Russia for
a period of 10 years.
Trade Ties
Indo-Russian trade volume as of 2014 is $9.51 billion of
which India’s exports which include pharmaceuticals, iron& steel,
manufactured products, apparels, tea, coffee and tobacco account of $3.17 billion and imports which
majorly include diamonds, fertilisers, nuclear and defence equipment is $6.34
billion. Despite the long standing bilateral ties, the volume of trade is
abysmally low. During the 15th Indo-Russian Annual Summit countries
have set a target of $30 billion by 2025. Besides, military ties, India and
Russia are contemplating on exploring trade ties beyond energy, IT, diamonds
and pharmacy. A $3 billion fund to promote startups in nanotechnology,
aerospace, defence and manufacturing sectors. India is also seeking Russian
investment in National Infrastructure Fund and keen in capitalizing Russian
interest in India’s Make in India (MII). In a $1 billion worth project, India’s
Hindustan Aeronautical Limited and Anil Amban’s Reliance Defence as local
partners will team up with Russia to manufacture 200 Kamov-226T helicopters to
replace aging Cheetah and Chetak helicopters used for ferrying supplies to
Siachen glacier. Turkey recently gunned down Russian fighter jet on the
charges of air space violations and infuriated Russia in retaliation pulled
plug on its bilateral trade relations with Ankara and is looking towards its
traditional partners for investment destinations. Modi during his visit is keen
on filling the vacuum created by those sectorial sanctions. Deputy PM of
Russia, Dmitry Rogozin who was in India few days back to prepare for Modi’s
trip indicated that Russia now wants India to be its major trade and economic
partner. Some Indian strategists opine that despite India’s shift towards
the west for defence equipment, Russia has an edge over the west in several
areas. Further, Russia having invested in India over several decades,
well-versed with Indian bureaucracy can be a valuable partner in MII.
Energy Cooperation
Another key aspect of
Modi’s trip will be expanding nuclear energy cooperation. Russia is seeking
India’s cooperation in building nuclear power plants in other third world
countries, in the area of joint extraction of Uranium, production of nuclear
fuel and atomic waste elimination. Russia might announce plans of setting up of
six Advanced Light Water Reactors of 1200 (Megawatt) each in Andhra Pradesh.
Modi’s astute oil diplomacy helped India’s ONGC Videsh to acquire 15% stake in
Russia’s Vankor Field when Modi attended BRICS Summit at Ufa in July, 2015.
During his upcoming Summit meetings Modi will finalize second overseas oil
assets acquisition worth $1 billion towards 29% of Rosenft’s stakes in Siberian
Oil Project by Oil India.
Defence Ties
The long standing cooperation in the defence field gradually
evolved from seller-buyer relationship to collaborative joint research,
development and production of advanced defence technology and systems. BrahMos
Missile system, joint development of fifth generation air crafts and multi
transport aircraft are the illustrious outcomes of such cooperation. But of
late several lucrative Indian defence deals were clinched by Russia toppling it
from the status of the top most defence equipment supplier of India. In an
effort to mollify Russia, India has finalized purchase of five units of S-400
Triumf Air Defence Missile Technology worth $10 billion, capable of destroying
incoming aircrafts, drones and missiles within a range of 400km. Defence Acquisition
System (DAC) has also cleared decks for purchase of six regiments of Pinaka
rocket system under MII, 571 light bullet proof vehicles for counter-insurgency
operations, 120 trawls, 24 Pechora Air defense systems and an electronic
warfare system deployed in mountainous areas for Indian Army. Last year
India leased a sub-marine Admiral Gorshkov which is commissioned into Indian
Navy as INS Vikramaditya. Defence cooperation has been a key aspect of
Indo-Russian relations and both countries annually hold joint military exercises.
Other major aspects on the agenda include expediting the
progress of the International North-South Transport Corridor (INSTC), up
gradation of Chabahar port, finalization of India’s proposed membership to the
Eurasian Economic Union (EEU), expanding cooperation in outer space research
projects and maximizing opportunities in SCO (Shanghai Cooperation
Organisation). This year marks 40th anniversary of launch of India’s
first satellite Aryabhatta on Russian launch vehicle Soyuz. According to some
media reports, Modi may travel to Astrakhan, gateway to Caspian Sea from
Moscow. During his stint as a Chief Minister of Gujarat, a MoU was signed
between Gujarat state and Astrakhan region establishing cooperation in five
areas- hydrocarbon research, ship-building, ship-breaking, revival of trade
routes (between Okha port of Gujarat and Olya Port in Astrakhan region) and
promotion of tourism. Sister-city relations are in vogue between Ahmedabad and
Astrakhan City. Indian House in Astrakhan houses a library that has extensive
reports of Gujarat traders traveling to this region rich in natural resources
and establishing strong trading ties. Old chronicles indicated that Indian
traders had even married local women and lived there. India and Russia are
now exploring the possibility of creating broad counter terrorism coalition.
Over the past few years India’s marked economic surge, levitation
towards the US and geopolitical prominence culminated in decline of Russia’s
share in India’s defence trade. Meanwhile, following annexation of Crimea by
Russia, Ukraine plunged into crisis and the west imposed economic sanctions on
Moscow. In a double whammy for Russian economy, plummeting global oil prices to
as low as less than $40 a barrel coupled by economic sanctions aggravated its
financial crisis. With India’s defence acquisitions from Russia witnessing a
steep fall, aggrieved Russia paid mere lip service to India’s candidature for
UNSC and chose to join China and Pakistan in undermining the G-4 initiative at
the UN General Assembly. Distressed by the prospect of recession and increased
western alienation Russia is pushed into China’s embrace. Joint military
exercises with China in the Mediterranean region testimonies changing
geopolitical equations of Asia. Despite the violation of the copyrights and
reverse engineering of Russian defence equipment supplied to China and reneging
on the prodigious $400 billion oil and natural gas contract for a period of 30
years, Russia is sticking to China. In 2012, China acquired Russian Su-27
flanker jets and reverse engineered them into J-11B aircraft. In partnership with China, Russia is now
entering into crucial Afghanistan- Pakistan regions and Central Asia.
Intriguingly, Russian strategists are now increasing viewing Pakistan as South
Asian gate keeper and following visits by General Kayani in 2012, there is a
conceivable Russian policy shift towards Islamabad. This was followed by an
agreement wherein Russia supplied RD 93 engines for JF 17 fighters assembled in
Pakistan in collaboration with China. Recently, General Raheel Sharif on his
visit to Russia signed an agreement for sale of advanced Sukhoi 35 fighters and
MI 35 attack helicopters. Ironically Russia in its joint statement with India
in 2003 condemned Pakistan for patronizing terror outfits on its territory is
now alarmingly quiet and soft towards Islamabad. In fact it later emerged
that having lost the lucrative Indian helicopter deals and combat aircrafts to
the US and France respectively, Russia out of desperation have reached out to
Pakistan.
With India pandering to the US by signing 123 agreement,
Russia is now flirting with Pakistan and China to enliven its grand stratagem
of creating a Eurasian Union. Ever since Russia’s aggressive air strikes
against the ISIS on September 30th, 2015 geopolitics experienced a
major shift. Economic sanctions,
plunging oil prices, Syrian attacks have seriously crippled Russian economy,
compelling it to seek refuge in China. But Russia is a junior partner with
China and is wary of its historical disappointments with Beijing wherein Mao
had out rightly dumped Russia to embrace US.
Russia’s overtures with Pakistan is borne largely out of its “compulsive”
need to sell military weapons. India is currently the fastest growing economy
and intensifying strategic ties, bilateral trade and economic partnership will
in best interest of both countries.
Through his phenomenal diplomatic outreach, Modi established
strong connect with Barack Obama, Shinzo Abe, Angela Merkel, David Cameron and
Francois Hollande but such a chemistry is not witnessed with Putin. India’s
growing ties with the US had offended Russia. But as an emerging economy, it is
incumbent on India to expand strategic ties with west and Japan for larger
geopolitical advantage, to contain the assertiveness of China and to attract
investments and technology. Contemporaneously, India has to infuse more
confidence in bilateral ties with Russia, with which it has special and highly
privileged partnership. Indeed, Russia needs to understand that India is now no
longer a balancing power but a leading nation in South Asia.
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